Protocol may not be reason for NI economy growth, Tory MP says

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Protocol may not be reason for NI economy growth, Tory MP says

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Protocol may not be reason for NI economy growth, Tory MP says


Northern Ireland's large public sector may be responsible for recent positive economic performance rather than the NI protocol, a Tory MP has suggested.

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Europe Minister James Cleverly was speaking at a House of Lords committee.

A range of official data suggests that NI has had a relatively good recovery from the impact of Covid-19.

Data from the Office for National Statistics suggest that among the UK regions only NI and London have seen output return to pre-pandemic levels.

Other recent official data released this month also shows NI doing better than the UK average.

NI service sector output is now 4.9% above the pre-pandemic level seen in the final quarter of 2019 while average UK service output is 1.4% above its Quarter 4 2019 level.

NI's production sector output, which is mainly manufacturing, is 5.2% above the level seen in Quarter 4 2019, while the UK as a whole remains 1.8% below its Quarter 4 2019 level.

The data for NI is not universally positive - the most recent quarterly ONS data suggests growth in NI slowed sharply in the first quarter of this year and was among the weakest in the UK in that period.

The ONS also cautions that regional data is more volatile than national estimates and so needs to be carefully interpreted alongside economic trends both in the regions and in the UK.